Table of Contents
Executive Summary
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- Market forecast
- Types of flight taken
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- Figure 1: Types of flight taken, July 2015
- Flight destinations
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- Figure 2: Destination flown to, July 2015
- Types of airlines flown on
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- Figure 3: Types of airlines flown on, July 2015
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- Figure 4: Classes flown, July 2015
- Flight bookings
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- Figure 5: How last flight was booked via the airline, July 2015
- Consumers open to sharing location data
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- Figure 6: Willingness to share data, July 2015
- Hyper-sensitive data in exchange for discounts, loyalty points and tailored in-flight services
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- Figure 7: What services people would be willing to share data* for, July 2015
- Consumers open to adverts in exchange for free entertainment services
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- Figure 8: Attitudes towards flight services, July 2015
- What we think
Issues and Insights
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- Airlines may need to beat online travel agents at their own game if they want to negate commission costs and drive direct bookings
- The facts
- The implications
- Passenger data can be the key to delivering relevant ancillary services
- The facts
- The implications
The Market – What You Need To Know
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- Passenger uplift finally exceeds the pre-recession period
- Passenger uplift on track for growth in 2015 as Q1 sees growth
- easyJet outperforms British Airways and Ryanair
- Aircraft orders up
- Strong competition from budget airlines affecting full-service offerings
- Charter airlines lose out on their share of package bookings
- Fuel prices drop but hedging curbs the benefit
- Competition heightens among trains and planes to the Continent
Market Size and Forecast
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- 2015 set for strong growth
- Growth expected over the next five years
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- Figure 9: Passengers uplifted at UK airports, 2010-20
- Figure 10: Volume forecast of total passengers uplifted at UK airports, 2010-20
- Figure 11: Volume forecast of international passengers uplifted at UK airports, 2010-20
- Figure 12: Volume forecast of domestic passengers uplifted at UK airports, 2010-20
Segment Performance
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- Packages grow market share
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- Figure 13: Independent versus non-independent air travel bookings, 2010-14
- Figure 14: Passengers uplifted at UK airports, scheduled versus non-scheduled, 2010-14
- Low-cost carriers outpace full-service airlines
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- Figure 15: Total passengers uplifted worldwide by UK airlines, low-cost* and full-service**, 2010-14
- Holiday trips grow as business travel remains flat
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- Figure 16: Volume of UK residents’ air trips abroad, by purpose, 2010-14
Market Drivers
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- Air travel growth contrasts with declining sea and tunnel trips
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- Figure 17: Overseas visits by air, sea and tunnel, by volume, 2010-14
- Airline punctuality drops across the UK
- Eurostar to grow market share?
- Heathrow dominates passenger uplifts
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- Figure 18: Passengers uplifted at UK airports, by airport, 2010-14
- Decision on Heathrow’s third runway set for autumn
- Jet fuel drops as oil prices remain low
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- Figure 19: Jet fuel prices, Pound Sterling per gallon, July 2010-July 2015
- UK to scrap air passenger duty?
- Consumer confidence up on back of improved jobs and pay data
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- Figure 20: Consumer confidence index, October 2014-July 2015
- Beacon technology to enhance service
- High UK rail fares could benefit domestic flights
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- Figure 21: UK rail fares index, 2004-15
- UK-based budget carrier to finally offer consumers transatlantic service?
- Lufthansa imposes a €16 fee on online travel agent bookings
- Costly move to eschew the GDS or ancillary revenue generator?
Key Players – What You Need To Know
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- Innovations helping with efficiency
- Passenger growth for easyJet and BA outstrips Ryanair’s
- Airlines increase aircraft orders
- BA and Virgin stand above other brands
- easyJet and Ryanair are the most used brands
- Flybe and Monarch suffer from weak overall image
Launch Activity and Innovation
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- Solar-powered planes
- Boeing says folding wing tip is in development for its upcoming 777X
- easyJet pioneering drones to curb delays
- KLM to provide tailored responses to customers’ questions online
- Soarigami seeks to end armrest battles
- Airlines offer iPads to passengers
- Air New Zealand allows parents to track unaccompanied minors
Market Share
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- Passenger growth for easyJet and BA outstrips Ryanair’s
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- Figure 22: Top 10 UK-based airlines, by passengers uplifted globally, 2010-14
- Airlines increase aircraft orders
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- Figure 23: Number of active aircraft, by airline, 2012-15
Brand Research
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- Brand map
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- Figure 24: Attitudes towards and usage of selected airline brands, June 2015
- Key brand metrics
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- Figure 25: Key metrics for selected airline brands, June 2015
- Brand attitudes: Virgin Atlantic and British Airways defined by quality, easyJet and Ryanair by value
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- Figure 26: Attitudes, by airline brand, June 2015
- Brand personality: easyJet and Flybe routes create accessibility
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- Figure 27: Brand personality – Macro image, June 2015
- Ryanair has closest association to negative traits
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- Figure 28: Brand personality – Micro image, June 2015
- Brand analysis
- Virgin Atlantic’s long-haul destinations create a certain amount of glamour
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- Figure 29: User profile of Virgin Atlantic, June 2015
- British Airways has strong advantage on trust
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- Figure 30: User profile of British Airways, June 2015
- easyJet has advantage over Ryanair on experience
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- Figure 31: User profile of easyJet, June 2015
- Flybe’s regional routes provide point of difference but limit usage
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- Figure 32: User profile of Flybe, June 2015
- Monarch lacks same strength of image as other brands focusing on low cost
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- Figure 33: User profile of Monarch, June 2015
- Ryanair remains heavily reliant on low prices
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- Figure 34: User profile of Ryanair, June 2015
The Consumer – What You Need To Know
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- Business market to remain flat…
- …but business travellers still present opportunities
- Airlines should focus their attention on tech-savvy consumers
- Europe is a key battleground
- A market for more domestic flights
- Budget carriers entering the long-haul market?
- Drive to increase direct bookings sees the introduction of fees by Lufthansa
- Most consumers are direct bookers
- Passengers open to sharing location data
- Hyper-sensitive data in exchange for discounts, loyalty points towards free services and tailored in-flight services
Types of Flight Taken
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- Half of consumers have flown in the past year
- Millennials and men are most likely to fly
- Londoners seeking an escape
- Tech-savvy flyers key influencers in the adoption of new technology services
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- Figure 35: Types of flight taken, July 2015
Flight Destinations
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- Europe is a key battleground
- Londoners most likely to fly long-haul
- Domestic flyers predominantly male
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- Figure 36: Destination flown to, July 2015
Types of Airlines Flown With
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- More than half have flown with a budget carrier in the past year
- Charter flights’ popularity waning
- Budget services appealing even to the financially well off
- Private market
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- Figure 37: Types of airlines flown on, July 2015
- Consumers want to economise on flights
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- Figure 38: Classes flown, July 2015
Flight Bookings
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- Airlines looking to boost direct bookings share further
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- Figure 39: How last flight was booked, July 2015
Flight Bookings via Airlines
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- Most book via the airline’s website
- Facilitating spontaneous bookings
- Fewer clicks is best for websites
- Partnering with venues can increase app engagement
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- Figure 40: How last flight was booked via the airline, July 2015
Flight Bookings via Travel Agents
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- Package holidays main reason flight was booked via travel agent
- Can airlines increase direct bookings by beating OTAs at their own game?
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- Figure 41: How last flight was booked via the travel agent, July 2015
Data Sharing Attitudes
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- Consumers most keen to share basic personal data
- What is the most valuable data for airlines?
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- Figure 42: Willingness to share data, overview, July 2015
- Hyper-sensitive data in exchange for discounts, loyalty points towards free services and tailored in-flight services
- Social media’s role
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- Figure 43: Willingness to share data, detailed breakdown, July 2015
- Services that will entice users to share valuable data
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- Figure 44: What services people would be willing to share data* for, July 2015
Attitudes towards Flight Services
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- Consumers open to adverts in exchange for free entertainment services
- Luggage tracker popular among young women
- Demand for pre-order services via mobile app
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- Figure 45: Attitudes towards flight services, July 2015
CHAID Analysis – Attitudes towards Flight Services
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- Methodology
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- Figure 46: Target groups based on attitudes towards airlines – CHAID – Tree output, July 2015
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- Figure 47: Target groups based on attitudes towards airlines – CHAID – Table output, July 2015
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data sources
- Abbreviations
- Definitions
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